Pre-market report. SGX Nifty indicates a weak opening for domestic bourses

The first day of 2023 is likely to witness weak opening for domestic markets, trend from SGX Nifty indicates.

Analysts expect markets to remain range-bound with mixed macroeconomic data, Covid situation in China and global market trends sending confused signals.

While GST collection and core output numbers remained robust, widening current accout deficit is a cause for conern, they added.

“The market ended its three-week losing streak last week, with the sensex and Nifty both rising by 2%, but there was some profit-taking at higher levels. Volatility is likely to remain high amid the rise of Covid cases worldwide and the ongoing Russia-Ukraine crisis,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

SGX Nifty at 18,170 indicates a gap down opening as Nifty futures on Friday closed at 18,206.85. Most global markets are closed on account of New Year. Analysts expect low volumes at the domestic bourses.

In the near future, Modi’s government’s last budget session before the 2024 election, Q4 earnings, and the monthly auto sales number will be the key events that the market will be looking for in January 2023. Apart from that, crude oil prices and rupee movement will be other important factors, he added.

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